The economic conditions of rural consumers in India have improved over the past two years, according to the Reserve Bank of India's latest Rural Consumer Confidence Survey (RCCS). The survey was conducted from July 1 to 12, 2025, with 7,924 valid responses.
Rural Consumers Responses
During the current period, rural consumer sentiment has marginally improved. As per the data, 41.6 per cent of rural consumers' responses stated that their economic situation has improved in the past two months, while 24 per cent noted that it remains the same. Only 34.4 per cent said that their situation has worsened. 7.1 per cent of respondents did not offer any response.
Employment Conditions
However, while the economic situation showed improvement, employment conditions remained unchanged according to the survey data. Due to a broad-based improvement on most parameters covered in the survey, the Current Situation Index (CSI) has edged up a little.
RBI stated, "Rural consumer confidence for the current period has improved; the Current Situation Index (CSI) inched up marginally owing to broad-based improvement across major survey parameters".
Survey From Rural & Semi-Urban Households
The central bank released the results of the July 2025 round of its bi-monthly survey on Wednesday. The survey collects views from rural and semi-urban households across all Indian states and three major Union Territories. It captures both current perceptions (compared to a year ago) and future expectations for the next year on key indicators such as economic situation, employment, income, spending, and inflation.
Inflation
Additionally, year-ahead inflation expectations also saw a notable drop of 100 basis points, coming down to 7.9 per cent. The share of rural households who anticipate a decline in prices and inflation for the year ahead also increased in this round.
Optimistic Households
Looking ahead, households expressed optimism about the future. Approximately 59.6 per cent of responses of rural consumers expect their economic condition to improve in the coming year. Meanwhile, 21.2 per cent of responses highlighted that it will remain the same, and only 19.2 per cent feel it may worsen.
